Nine Elms deal keeps Vinci’s ink black

19 Mar 18
Vinci Construction UK made a loss on its construction activities in 2017 but came out on top overall thanks to the sale of some land.

French giant Vinci’s UK subsidiary generated revenue for 2017 of £855.1m (2016 £931.7m). Gross profit of £36.0m was substantially outweighed by administrative expenses of £54.4m, but thanks to Vinci St Modwen joint venture selling some land on its New Covent Garden Market site, pre-tax profit came out at £20.5m, compared to £2.8m in 2016. Vinci made £35m in 2017 from its share of VSM (NCGM) Ltd.

Vinci’s problems are in the Civil Engineering division (Taylor Woodrow) which, thanks to the Nottingham tram project, made operating losses of £17.7m in 2017 and £12.6m in 2016. Turnover shrank to £205m in 2017 (2016: £269m).

Excluding the legacy Nottingham tram project, the Civil Engineering division made an operating profit of £1.2m.

The Building division’s turnover in the UK increased 3.7% to £422m (2016: 407m) and contributed an operating profit of £6.5m.